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The Memphis budget, explained
The City of Memphis runs on a fiscal year that starts July 1 and ends June 30. The Mayor submits a proposed budget to the City Council in the spring; the Council holds department-by-department hearings through May and June and adopts a final budget — including the property tax rate — by the end of June.
The budget timeline
- April: Mayor's proposed budget delivered to Council
- May–June: Department budget hearings
- Mid-June: Council votes on amendments
- Late June: Final adoption + property tax rate set
- July 1: Fiscal year begins
Where the money comes from
The two largest sources of city revenue are property tax and local-option sales tax. State-shared revenues, fees, and grants make up most of the rest. When sales tax collections lag the forecast mid-year, the city has to make cuts or pull from reserves.
Where the money goes
Public safety (Police and Fire) is the largest single category of city spending, typically over 40% of the general fund. Sanitation, parks, libraries, and general government make up most of the rest. Debt service and pension contributions are growing line items the Council can't easily reduce.